HAMILTON, Bermuda, March 27, 2014 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today announced that its wholly owned subsidiary, TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide"), has signed a non-binding term sheet with San Leon Energy plc ("San Leon"), a publicly traded oil and gas company based in Dublin, Ireland and Hutton Energy plc ("Hutton"), a private oil and gas company based in London, England.
The term sheet provides that TransAtlantic Worldwide would fund $5.0 million of past expenses in nine concession blocks in the Republic of Poland. In exchange, TransAtlantic Worldwide would receive a 50% interest in the nine Polish concessions, which contain approximately 1.9 million gross acres. The $5.0 million payment for past expenses would be repaid to TransAtlantic Worldwide by San Leon and Hutton from 50% of their initial production of their net interests. TransAtlantic Worldwide would operate the nine concessions, associated corporate entities and banking facilities, and would fund 100% of the cost to drill and complete two wells and re-enter and stimulate four wells. Upon realizing accumulated sales of 150,000 BOE, net to its 50% interest, TransAtlantic Worldwide would pay its partners a $5.0 million success fee.
The transaction is subject to the completion of satisfactory due diligence, definitive agreements and corporate, government, and regulatory approvals. A more detailed discussion of the proposed transaction is available on TransAtlantic's website at http://www.transatlanticpetroleum.com/news.aspx.TransAtlantic's Chairman and CEO Malone Mitchell 3 rd commented, "We see an exciting opportunity to target conventional oil and gas in the southern Permian Basin of Poland, which is a prolific producing basin throughout much of northern Europe. Poland has excellent fiscal terms and prices. We believe that our initial $10.0 – 15.0 million investment in two wells and four recompletions will be recompensed by resulting reserves." About TransAtlantic Petroleum Ltd. TransAtlantic Petroleum Ltd. is an international oil and natural gas company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company holds interests in developed and undeveloped properties in Turkey and Bulgaria.